Online gambling credit-card ‘loophole’ to be banned

“Legislating a ban on the use of credit cards for online gambling will help protect vulnerable Australians and their loved ones.”

Under existing rules, customers can still use debit cards or a bank transfer to deposit money into accounts.

The government has been discussing measures to amend Australia’s online gambling laws for several months. The credit-card ban was widely expected and supported among the top players in the online wagering industry, which consists of ASX-listed Tabcorp and foreign-owned bookmakers Sportsbet and Ladbrokes.

The ban was recommended by a parliamentary joint committee under the previous Morrison government. The Albanese government has set up its own online gambling parliamentary inquiry, which has been looking at further strengthening regulations, particularly around advertising.

Credit run-around

Australia has the highest annual gambling losses per person, fuelled by the country’s poker machine use and online betting. Among online bookmakers, which run slick apps, there has been a fierce competition for customers.

The main players have come out in support of a credit-card ban. After an online gambling inquiry earlier this month, Australian Banking Association chief executive Anna Bligh reiterated the banking industry wanted to ban the use of credit cards.

“In pokie machines, pubs, clubs, casinos, TABs, you haven’t been able to use a credit card to gamble in the physical world for more than two decades,” Ms Bligh told ABC News. “You shouldn’t be getting into debt with gambling.

“You shouldn’t be able to do in the virtual world what you can’t do in the physical world in this area of activity in our view.”

The government said lottery services, including those which are run by charities, would not be subjected to the “credit-card ban” because they present a “low-risk to gambling harm”.